brokerage account definition
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- What is a Broker Account? Definition: What is a Broker Account? A broker account (also known as a brokerage account) is defined as an account that allows an investor to deposit funds and place investment orders with a licensed broker or brokerage firm. The broker carries out the transactions on the investor's behalf for a fee called a “commission”.
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Purpose of a Brokerage Firm piggy bank with money 2 image by Melking from Fotolia.com. A broker acts as a middleman in a financial transaction, between a buyer and seller of securities, such as stocks and bonds. A brokerage firm consists of a number of brokers, working together in the same company to service a larger pool of financial clients.
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- Brokerage accounts also differ from savings accounts in the following ways: 1  Savings accounts don’t offer you access to investments; instead, you’ll earn an interest rate on money deposited. 2  The money in a savings account is FDIC insured up to $250,000 per depositor, per insured bank.
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Brokerage Contract Law and Legal Definition Brokerage Contract Law and Legal Definition. A brokerage contract is a written contract by which a broker is employed as an agent to make contracts in the name and on behalf of the principal. It will contain details of the terms of the business relationship between a broker and his/her principal.
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What Is a Brokerage Account? When you open a brokerage account, you have to pick between a so-called cash and margin account type. 1  A cash brokerage account is one that requires you to deposit cash and securities, in full, by settlement, in order to engage in transactions. The brokerage firm won't lend you any money.
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About Broker-Dealers and Broker Dealer Agents Broker-dealer (“BD”) is defined in Corporations Code (“Code”) Section 25004 and means any person engaged in the business of effecting transactions in securities in this state for the account of others or for his own account. broker is an individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission. A dealer is any person in the business of buying and selling securities for his or her own account, through a broker or otherwise.
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Discretionary account Discretionary account. A discretionary account is a type of brokerage account in which clients authorize their brokers to buy and sell securities on their behalf without prior consent for each transaction. A client may set guidelines for the account, such as the types of securities the broker may purchase. brokerage account in which a broker is able to make decisions without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner.
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What Is a Brokerage Account and How Do I Open One? What is a brokerage account? A brokerage account allows you to buy and sell everything from stocks and bonds to mutual funds, currency, futures and options contracts, depending on the broker. Some brokerage accounts are taxable, which means the money you earn from investments within the account can be subject to capital gains taxes. But if your goal is to invest for retirement, you could open an IRA or Roth IRA at your broker to gain special tax benefits. Is a brokerage account right for you? If you’re investing for something other than retirement, won’t need the money in the next five years and are interested in managing your own investments, then a regular, taxable brokerage account is a good choice. Here are our top picks for best online brokers. If your goal is to save for retirement, then you should first make the most of the free money available through your 401(k) match.
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Can someone who is not yet of legal age open a brokerage account? Another way a child can have a brokerage account in his or her name is through what is called a custodial account. In this type of account, the child owns the assets contained within the account, but the parent has control of the investment decisions and any withdrawals which might be made.owever, it is possible for an underage person to have a brokerage account with his or her own name attached to it, but in order for this to happen, a parent or guardian must also be involved with the account. There are a few different ways this can happen.
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Broker Definition [edit]. In general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property. Brokers also can furnish market information regarding prices, products, and market conditions. Brokers may represent either the seller (90% of the time) or the buyer (10%) but not both at the same time.
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- DEFINITION of 'Broker-Dealer'. A person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction.The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages, because most of them act as both agents and principals.A brokerage acts as a broker (or agent) when it executes orders on behalf of clients, whereas it acts as a dealer (or principal) when it trades for its own account.EFINITION of 'Broker-Dealer'. A person or firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction.
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- A standard brokerage account for up to three people. This general investing account may be used to self-manage a diversified portfolio. This account is eligible for margin borrowing, options trading and Money Direct® instant funding. Some services are subject to approval.
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Omnibus Account Definition An omnibus account is formed when a brokerage firm groups together individual accounts to form a unified account at another brokerage firm.Omnibus accounts are popular in futures trading, and they open up new markets and opportunities for a brokerage firm's client base.he omnibus account structure achieves high economies of scale by allowing a firm to cluster trades from multiple brokerages into a single, unified account. Omnibus accounts are also popular because individual clients prefer to use the same firm, whether trading locally or internationally.
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Before You Open a Brokerage Account By Joshua Kennon. Updated October 12, 2016. If you want to invest beyond your basic 401(k) or Roth IRA, you are going to need to open something known as a brokerage account. I've already explained what a brokerage account is an how it works.
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Broker-dealer In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process.
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- A standard brokerage account for up to three people. This general investing account may be used to self-manage a diversified portfolio. This account is eligible for margin borrowing, options trading and Money Direct ® instant funding. Some services are subject to approval.
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What is a 'Brokerage Account' Brokerage Account. What is a 'Brokerage Account'. A brokerage account is an arrangement between an investor and a licensed brokerage firm that allows the investor to deposit funds with the firm and place investment orders through the brokerage.
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brokerage account n a fund that a customer has entrusted to a securities brokerage. “you can't get a brokerage account unless you have $20,000”. an account with a securities brokerage whose transactions are settled on a cash basis. an account with a securities brokerage in which the broker extends credit.
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Broker Definition [edit]. In general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller.An example would be a real estate broker who facilitates the sale of a property.n general, a broker is an independent agent used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller.
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What is a 'Trading Account' What is a 'Trading Account'. A trading account is similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer.
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- A fee charged by an agent, or agent's company to facilitate transactions between buyers and sellers. The brokerage fee is charged for services such as negotiations, sales, purchases, delivery or advice on the transaction.
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List of programming and computer science terms The minimum amount of money required to open an account. An online broker provides trading services over the Internet, as opposed to a traditional (or full service) brokerage firm. If you decide to open an account with a traditional brokerage firm, you will work one-on-one with a personal stock broker.
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How To Open Pattern Lock Of Any Android Phone Without Data Loss Step 1. Click on the Forgot Password or Forgot Pattern option on your device’s lock screen. If you have entered the password incorrectly 5 times, then you will get a popup asking if you forgot your password. Simply use the Forgot Password option in the popup.
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What is a 'Brokerage Account' Some full-service brokers provide extensive investment advice, charging high fees for their efforts, while most online brokers simply provide a secure interface through which investors can place trade orders and, therefore, charge relatively low fees for their services.
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DEFINITION of 'Forex Broker' Forex Broker. DEFINITION of 'Forex Broker'. Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market.
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brokerage account Use brokerage account in a sentence. “ 1  Using a stolen credit card to fund a brokerage account has become the newest trend among the more sophisticated identity thieves. ”. “ 2  When my brother decided to start investing in the stock market, I advised him to open a brokerage account with my company where I could make sure he was taken care of. ”.